THE ETERNAL SOVEREIGN

Tag: commodity

  • Crude prices climb as markets weigh U.S. stockpile draw and Venezuelan supply developments

    Oil prices climbed during Asian trading on Thursday, regaining some losses after sharp declines triggered by worries over rising Venezuelan crude supplies.

    Additionally, stronger-than-anticipated weekly declines in U.S. oil inventories supported the price recovery. Ongoing conflict between Russia and Ukraine also contributed to maintaining a risk premium in the market.

    March Brent crude futures increased by 0.7% to reach $60.38 per barrel, while West Texas Intermediate (WTI) futures also gained 0.7%, settling at $56.28 per barrel as of 20:25 ET (01:25 GMT). Both benchmarks had fallen more than 1% over the previous two sessions.

    Attention turns to US – Venezuela oil agreement after Trump highlights up to $3 billion in planned crude sales.

    Oil markets are closely watching the impact of a new agreement between the U.S. and Venezuela on global oil supplies.

    U.S. President Donald Trump announced on Tuesday that Venezuela will deliver between 30 million and 50 million barrels of oil to the U.S., valued at up to $3 billion, shortly after U.S. forces detained Venezuelan President Nicolás Maduro.

    Trump also appeared to encourage multiple U.S. oil companies to expand production activities in Venezuela, with Chevron Corp (NYSE: CVX) leading these efforts. According to Reuters, Chevron is negotiating to broaden its license to operate in the country.

    Currently, Chevron is the only major U.S. oil company active in Venezuela, benefiting from special government exemptions that shield it from stringent sanctions imposed on the nation.

    Markets are worried that a significant rise in Venezuelan oil output could further swell global supplies, adding to prevailing fears of an oil glut in 2026. Traders are already pricing in ample supply conditions, with expectations that any additional barrels from Venezuela might weigh on crude prices.

    However, analysts caution that any meaningful increase in Venezuelan production is unlikely to happen quickly, given the country’s deep political instability and the extensive investment needed to rebuild its dilapidated oil infrastructure after recent upheavals.

    A Financial Times report also noted that U.S. oil firms are seeking strong legal and financial guarantees from the U.S. government before committing to major investments in Venezuela’s oil sector, reflecting industry hesitancy amid uncertain policy and market conditions.

    U.S. crude stockpiles decline beyond forecasts

    Government data released Wednesday revealed that U.S. oil inventories fell by 3.8 million barrels in the week ending January 2, significantly exceeding expectations of a 1.2 million barrel decline.

    This reduction was almost double the 1.9 million barrel draw reported the previous week, bolstering confidence that demand remains robust in the world’s largest fuel consumer.

    Attention this week centers on several key U.S. economic reports, especially the December nonfarm payrolls data set to be released on Friday, which is expected to influence interest rate forecasts.

    Sources: Investing

  • Japanese Candlesticks

    Japanese Candlesticks are a type of price chart used in financial markets to show how an asset’s price moves over a specific period of time. They are one of the most popular tools in technical analysis because they visually display market psychology—who is in control: buyers or sellers.

    Origin

    Japanese candlesticks were developed in Japan in the 18th century, originally used by rice traders. They were later introduced to Western markets by Steve Nison in the 1990s.

    Why Candlesticks Are Powerful

    • Easy to read and interpret
    • Show market sentiment instantly
    • Help identify trend reversals and continuations
    • Work across all markets and timeframes

    Used in
    📈 Stocks
    💱 Forex
    🪙 Crypto
    🛢️ Commodities

    Common Candlestick Patterns

    Best Practice

    Candlestick patterns are most effective when combined with:

    • Trend analysis
    • Support & resistance
    • Volume
    • Indicators (RSI, MACD, Moving Averages)

    Simple Definition

    Japanese candlesticks are a visual price charting method that shows market psychology through price action.

  • Gold extends rally on Venezuela concerns, closing in on historic highs

    Gold continued its strong rally in Asian trading on Tuesday, moving back toward record territory as rising geopolitical tensions after a U.S. strike on Venezuela boosted safe-haven demand for the metal.

    Spot gold inched up 0.2% to $4,458.20 an ounce at 01:22 ET (06:22 GMT), while U.S. gold futures gained 0.4% to $4,469.10 per ounce.

    Bullion had jumped 2.7% in the previous session—its biggest one-day advance in weeks—as investors sought refuge in precious metals amid growing global market uncertainty.

    Although prices reached a record high of $4,549.71 per ounce last week before retreating on profit-taking, gold has since recovered and is again trading close to those peak levels.

    Gold jumps as U.S. action in Venezuela and Fed rate-cut expectations fuel demand

    The surge was mainly sparked by events in Venezuela, where U.S. troops carried out a surprise operation over the weekend that led to the arrest of President Nicolás Maduro, sharply intensifying geopolitical risks and unsettling commodity markets.

    Officials said Maduro was taken to the United States to face long-standing narcotics-related charges and entered a not-guilty plea in a New York court on Monday.

    According to Reuters, U.S. President Donald Trump is preparing to meet with executives from major American oil companies to discuss measures to increase Venezuela’s oil output.

    Expectations of prolonged geopolitical tensions and potential policy changes have further strengthened gold’s role as a hedge against market volatility.

    Gold also drew support from growing expectations that U.S. interest rates will continue to decline in 2026.

    Markets are now factoring in two additional Federal Reserve rate cuts this year, an environment that typically benefits non-yielding assets like gold.

    On Monday, Minneapolis Fed President Neel Kashkari noted that U.S. inflation has been easing gradually, strengthening the view that the central bank could have room to ease policy if price pressures keep moderating.

    Investors are closely tracking upcoming U.S. economic data for further signals on the Fed’s policy direction. December’s nonfarm payrolls report, due Friday, is expected to be a crucial gauge of labor market strength and could shape rate expectations in the months ahead.

    Silver and platinum climb as copper sets a new record

    Other precious and industrial metals also traded firmly higher on Tuesday.

    Silver surged 3% to $78.78 an ounce, while platinum gained 2% to $2,331.25 per ounce.

    On the London Metal Exchange, benchmark copper futures rose 2.2% to a record $13,331.0 per ton. U.S. copper futures also advanced 1.5% to $6.07 a pound, marking their highest level on record.

    According to ING analysts, copper’s continued rally has been driven by disruptions to mine supply and shifts in trade flows caused by tariffs imposed by U.S. President Trump.

    Sources: Investing

  • Weekly Market Outlook: Calm Start to the New Year as US Dollar Holds Steady Ahead of Key Data

    Financial markets extended the holiday-thinned mood on the first trading day of the new year, with investors largely staying on the sidelines. Markets remain in a wait-and-see mode ahead of a data-heavy week.

    The US Dollar Index (DXY) traded near the 98.40 area on Friday, paring a significant portion of its New Year losses.

    Gold (XAU/USD) traded around the $4,320 level, surrendering all intraday gains following the New Year’s break. Expectations of lower US interest rates and elevated geopolitical tensions have continued to support precious metals in recent sessions.

    EUR/USD hovered near 1.1740 after edging lower earlier in the week, remaining under pressure as investors await upcoming economic data.

    GBP/USD traded close to the 1.3480 area, little changed during the first US session of the year.

    USD/JPY hovered around the 156.50 region, trading slightly lower on the day with limited intraday movement.

    AUD/USD traded near the 0.6690 area on Friday, posting modest gains after paring nearly half of its intraday advance.

    Key Economic Data Ahead: Upcoming Releases Set to Shape Market Sentiment

    Over the coming days, investors will closely watch US employment figures and global inflation data, which are expected to influence central bank policies.

    • Monday: The US Institute for Supply Management (ISM) releases the Manufacturing Purchasing Managers’ Index (PMI) for December.
    • Tuesday: Germany’s Harmonized Index of Consumer Prices (HICP) and Australia’s Consumer Price Index (CPI) are scheduled for publication.
    • Wednesday: The US ADP Employment Change report (December), ISM Services PMI (December), and the preliminary Eurozone HICP (December) will be released.
    • Thursday: The US Trade Balance for October and Consumer Credit data for November are due.
    • January 9: The highly anticipated US Nonfarm Payrolls (NFP) report for December and the preliminary January Michigan Consumer Sentiment Index will be published.

    These releases are expected to set the tone for market direction and provide clues on the pace of monetary tightening by major central banks.

    Sources: Fxstreet